How to assign tax to company code

[Former Member]

I have created a tax in FTXP. I dont know how to assign it in company code.

Please help. Thanks!

[Former Member]

Dear Ronald,

SPRO PATH to assign the company code to Tax codes:-

SPRO- Logistics General-Tax On Goods Movement-India-Basic Setting-Determination Of Excise Duty-Condition Based Excise Determination-Assign tax code to Company Code.

[Former Member]

T.code FTXP is used to create Tax code.

All the Taxes are divided into two categories:

• Input tax: All taxes related to purchase are considered as Input tax.

• Output tax: All taxes on sales come under this category. For e.g CST,service tax, VAT

T.code FTXP is used to create both input or output tax code.

Steps to create Tax code:

1. Go to T.code FTXP, and select the country for which you want to create tax

IMG - Financial accounting - Financial accounting global settings - Tax on sales/purchases - Basic settings - Assign country to calculation procedure.

[Former Member]

Hi

please go through T.code : OBBG and select country then give tax Procedure .then system will trigger depend on chart of a/c.

Thanks

Chowdary

[Former Member]

Hi,

Tax is not directly assigned to company code

Tax is assigned to tax procedure

Tax procedure is assigned to Country

Comapny code will be having link with country

and inturn company code to tax code

regards

Arun

[Former Member]

How will I do that?

[Former Member]

Hi,

Path is as follows

1. For Assigning TAX PROCEDURE TO COUNTRY

SPRO- Financial Accounting-Financial accounting Global settings - Tax On sales / Purcahses - Basic settings - Assign Calculation Procedure To Country ( In Indian Scinario you can assign TAXINJ or TAXINN To country IN )

2. FOR TAX CODE CREATION

FTXP- Put Country -Create Tax CODE

Regards

Arun.R

[Former Member]

Thank you very much for your replies!

[Former Member]

Hi

For tax codes configuration is

1.Define Tax Procedure -- OBQ3

2.Assign country to Calculation Procedure --OBBG

3.Creation of tax codes---FTXP

4.Assign 0% tax codes for non-taxable transactions---OBCL

5.Assignment of Accounts----OB40

Here you will double click MWS and give Chart of Accounts and give tax code and sale tax account and VST , give tax code and purchase tax account.

6.Assign Tax Codes in Sales Account(G/L Account)----FS00

Here you are assigning Tax Code to Chart of Accounts which is aasigned to Company Code.

Hence we dont assign tax code to company code.

Regards

Venkat

[Former Member]

Hi,

Tax are not assigned directly to company code. Tax are related to Country code, U have to select the country code and maintain the tax code.

While assigning to G/L Account it will ask for chart of account, which is assigned to company code.

Regards,

Sreekanth